You’ve been watching the data, looking at the trends, hearing the stories and binge watching the television shows – maybe you have even purchased a property as a first step on your journey to claim your stake of the lucrative real estate investing world. If you are interested in investing in real estate, it is likely you understand the intrinsic opportunity real estate investing represents, and have done enough homework to validate that a real estate investment can create revenue in ways other financial investment tools can’t. Real estate investing has played a role in creating a whopping 90% of the world’s millionaires – and you want to get in the game – but where do you start? How do you build a lucrative real estate portfolio, avoid the many risks and pitfalls of this industry, and set yourself up for success?
While the old adage, “It is always a good time to invest in real estate” may ring true, many new investors grossly underestimate exactly what it takes to be successful in this world without losing their sanity (or their bank accounts). Many don’t truly understand the time required to develop a successful investment portfolio, or have already experienced first-hand the lengthy, arduous and financially draining process of rehabbing a fixer upper. Others realize their local market may not be providing them with the highest rate of return for their real estate investment, yet don’t have the knowledge or bandwidth to expand into more lucrative markets. The smartest investors are those that realize that the real estate investment world is deceivingly complex and time consuming – and more and more often, those investors are leveraging turnkey real estate to help them realize their goals.
Turnkey properties gained momentum following the housing market bubble burst, when it became cheaper to buy homes than rent them in most parts of the United States. This investment approach provides individuals who want to take advantage of the financial opportunities available through real estate investing, but recognize the myriad of challenges and risks associated with going it alone.
A turnkey investment company finds, acquires, rehabs, rents, and then sells cash-flowing rental properties to prospective investors. The whole premise of turnkey real estate investing centers around the idea that the shorter the turnaround to rent a property, the faster a new buyer can start seeing a return on their investment. By leveraging a turnkey investment company, an investor mitigates the time and expense associated with rehabbing a property, and is able to purchase the property with a tenant ready to move in. Turnkey investment companies may also provide property management services to manage the tenant relationship once they are in the home, freeing the investor from the significant strain that can create and allow them to focus their time on building more passive income, rather than managing tenants. Most reputable turnkey investment companies provide extensive services to their clients – and work in partnership with their clients to ensure their short and long term real estate investing goals are met.
Turnkey real estate investing has also fueled long-distance real estate investing – in the 16-month period from June 2016 to October 2017, the percent of buyers who invested in real estate sight-unseen jumped from 19% to 35%, according to a study from Redfin. Because turnkey investment companies have the capabilities to study, track and purchase high ROI properties across all markets, their clients can benefit from moving beyond just their local market to maximize their investment ROI. Turnkey rental properties can be excellent avenue to enable long-distance real estate investing for its clients.
Whether you are trying to buy your first rental property, or diversity your existing real estate investments, there a myriad of benefits to leveraging turnkey investments to help you realize your real estate investing goals. The entire life cycle of the real estate investment process can become easier and faster, enabling you to start generating passive income as you build your real estate portfolio.
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